5 Things to Know Before the Stock Market Opens

Federal Reserve Chair Jerome Powell will defend interest rate levels at a hearing before the U.S. Senate; BP (BP) shares are falling in London trading after it disclosed second-quarter impairment charges that could total up to $2 billion; Intel (INTC) shares are continuing to rise in premarket trading on momentum over a report highlighting its positioning in the growing artificial intelligence (AI) marketplace; Chipotle (CMG) shares are edging higher after sinking Monday on fading optimism over its stock split; and Disney (DIS) announces a new Tokyo-based cruise ship. U.S. stock futures are rising ahead of Powell’s testimony. Here’s what investors need to know today.

1. Senate Expected to Press Powell on Rate Cuts

Market watchers are focused on remarks today from Federal Reserve Chair Jerome Powell, who will begin the first of two days of congressional testimony this morning at a 10 a.m. ET hearing of the Senate banking committee. Powell will discuss the Fed’s twice-yearly report on monetary policy, which updates lawmakers about the central bank’s recent efforts to control inflation through higher interest rates that have been set to 23-year highs. He is expected to face challenges from senators who believe the Federal Reserve should begin cutting interest rates more aggressively than called for in Fed projections of just one rate cut in 2024.

2. BP Falling on Impairment Charge, Poor Refining Margins

Shares of BP (BP) are falling 4% in London trading after the British energy giant said it expected to post an impairment of between $1 billion and $2 billion in the second quarter. The company also said it expected that weak margins on its refining operations and poor oil trading performance would lead to a $500 million to $700 million second-quarter hit when it reports on July 30. Upstream production in the second quarter was expected to be mostly flat when compared with the second quarter, BP said.

3. Intel Shares Continue Rise on AI Report

Shares of Intel (INTC) are up 3% in premarket trading as the chipmaker amid investor excitement over a report on the company’s artificial intelligence (AI) work. Intel shares jumped more than 6% Monday on a Melius Research report that said the computer hardware maker was well positioned to benefit from an AI boom. While Intel shares hit a two-month high on Monday, they were still trading lower by about 30% year-to-date.

4. Chipotle Shares Edge Higher After Plunging on Momentum Loss

Chipotle Mexican Grill (CMG) are edging higher in premarket trading as the fast-casual chain seeks to regain stalled momentum following its 50-for-1 stock split. After hitting an all-time-high in mid-June, Chipotle shares have tumbled, falling more than 13%, including a drop of more than 5% in Monday’s session. While Chipotle shares fell to their lowest level since April, they’re still up by nearly a third this year.

5. Disney to Launch Tokyo-Based Cruise Ship

Tokyo Disneyland operator Oriental Land Co. said that it has signed an agreement with The Walt Disney Co. (DIS)’s Disney Enterprises to add a new Tokyo-based cruise ship, with services expected to start by fiscal 2028. Modeled after the Wish, the largest ship in Disney’s fleet, the newest addition is part of the company’s $60 billion, 10-year expansion of its theme parks and cruise operations. Shares of Disney are little changed in premarket trading but have moved higher by more than 7% on the year.

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